Suppose stock in Boone Corporation has a beta of 0.90. The market risk premium is 7 percent, and the risk free rate is 8 percent. Boones last dividend was $ 1.80 per share and the dividend is expected to grow at 7 percent indefinitely. The stock currently sells for $25.What is Bonnes cost of equity capital?

Boone has a target debt/equity ratio of 50 percent. Its cost of debt is 8 percent, before taxes. If the tax rate is 34 percent, what is the WACC?

Boone is seeking $40 million for a new project. The necessary funds will have to be raised externally. Boones flotation costs for selling debt and equity are 3% and 12% respectively. What is the weighted average flotation cost of external financing? Refer to the previous requirement, if flotation costs are considered, What is the true cost of the new project?